Towards J&K’s development

The Modi government has taken a right and bold step in scrapping Article 370. The main purpose of this Article was to ensure that the distinct identity of J&K’s population was preserved.

Though the Article was introduced as a temporary provision that was to be removed in due course of time, that never happened, even after 72 years of Independence.

If J&K ceases to be a part of India, will it be able to survive independently? J&K’s Plan expenditure is fully financed by the Central government. Kashmir is currently the most subsidised State in the country. Though Bihar is the poorest State, J&K gets 11 times more central assistance than Bihar.

Today, the general sentiment in the country is that Article 370 is doing no benefit to the people of J&K, nor is it of any help to others. It has just become a barrier in the path of development of the State and the country.

Chandigarh

The resolution moved by Home Minister Amit Shah in Parliament to scrap Article 370 of the Constitution is untimely. While the BJP has been vouching for the scrapping of Article 370 for long time and continued to make it as one of its key promises in its poll manifesto every time, its decision to give effect to its promise at a time when the sense of alienation is at its peak among the residents of the Jammu and Kashmir is truly unfortunate. Rather than initiating a dialogue with all the stakeholders, the BJP-led government, on the strength of its brute majority, seems to be making attempts to derail peace in the State.

Sholavandan, TN

This refers to ‘Ill-effects of neglecting macroeconomics’ (August 5). Private investment in the economy is contracting because of the negative or diminishing returns of India Inc, and the loss of confidence in the economy. A repo rate-cut in the ensuing MPC meeting, an accommodative stance, and execution of actions to transmit the effect of rate cuts to the end-beneficiaries will push the demand for credit. The role of NBFCs in the financial system is shrinking on account of the liquidity squeeze arising out of the imprudent lending by those institutions.

The liquidity crunch in NBFCs is adversely impacting the supply of credit to important segments of the economy. Remedial measures like financial support are paramount to saving the ailing NBFCs, else it will affect the growth in investments and, consequently, economic revival. Another area of concern is the inability of the banking system to come out of the clutches of bad loans.

A drastic reduction in the level of bad assets and sufficient capital infusion are imperative to enable banks fund projects. In the absence of a strong corporate bond market, the banking sector must provide adequate financial support to the investors and, to make it feasible, the recycling of funds are critical and it must take place fast.

For that, the lending needs to be prudent and against good collateral based on sound contractual agreements. The corporates in many instances are failing to raise funds from the market because of its inherent weaknesses.

In order to raise funds, the corporates are obtaining undeserving credit ratings from credit rating agencies. In many instances the ratings have proved unreliable and resulting in heavy losses for investors.

Kottayam

This refers to ‘The painful road to justice’ (August 5). It is neither the first time and sadly nor the last time when we have seen a powerful person not only sexually harassing a women from the marginalised section of society but later threaten her family to remain silent. In the Unnao case, the BJP’s decision to remove MLA Kuldeep Singh Sanger from the party came pretty late. Every political party has such kind of elements in their ranks. This case caught the public eye only because of the media coverage and the resilience shown by the victim to get justice. But there are so many such cases that go unreported.

Noida

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

COMMENT NOW